SB 1108 Summary

• Allows governmental entities to authorize contractors and subcontractors to directly purchase tangible personal property using the governmental entity's sales tax exemption certificate for public works projects.

• Requires governmental entities that authorize direct purchases to issue a written authorization letter to contractors/subcontractors specifying the project title, contractor name, governmental entity name, and list of approved materials and equipment.

• Establishes that governmental entities remain solely liable to the Department of Revenue for any taxes, penalties, and interest if purchases are later determined to be non-exempt, while dealers and contractors are relieved of tax collection responsibility when holding a valid certificate of entitlement.

• Directs the Department of Revenue to adopt rules considering that the risk of damage or loss for tangible personal property is dictated by the contract terms when a governmental entity authorizes direct contractor purchases.

• Effective date: July 1, 2018.